Blogging Options: CBOE Mid-day Update

Volatility as an asset class

Best Buy (BBY) is recently down $1.49 to $12.26 after the big consumer electronic retailer showed a larger than expected Q3 loss on a charge and weak margins. December put option implied volatility is at 97, January is at 88, March is at 70; above its 26-week average of 54.

Green Mountain Coffee (GMCR) is recently up $1.73 to $29.06 after announcing the appointment of Coke (KO) executive, Brian Kelly, to President and CEO. December call option implied volatility is at 85, January is at 72, March is at 67.

Hormel (HRL) is recently down 1.28 to $30 on Q4 earnings rising 13% as sales declined in its refrigerated-foods business. December option implied volatility is at 17, March is at 19; compared to its 26-week average of 19.

CBOE Volatility Index (VIX) is recently down 0.2% to 15.21. VIX December 15 and 16 puts are active on total option volume of 314K contacts at the CBOE.

S&P 100 Options (OEX) is recently down 0.32 to $632.16 as Federal Reserve Chairman Ben Bernanke say’s averting a fiscal cliff will have positive impact on the economy.